Lithuania offers access to the EU Single Market, a skilled workforce, sector-specific capabilities, and investment support measures. Find out more about Lithuania as a location for foreign direct investment.
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Lithuania offers companies considering investment in Europe access to the EU Single Market, a skilled workforce, and targeted investment support. Its economy grew by 2.9% in 2025, while the European Commission forecasts 3.0% growth in 2026.
The country’s investment proposition spans fintech, advanced manufacturing, life sciences, AI, defence, and cybersecurity, with capabilities linked to European markets and supply chains.
Lithuania’s economy spans several export-oriented industries, including ICT, life sciences, advanced manufacturing, fintech, and defence technologies. Together, they provide a base for technology-intensive operations serving the EU market.
Lithuania has an established manufacturing base, where companies can draw on skilled engineering talent, access established EU supply chains, and serve the EU market. Investors in electronics, automotive components, and industrial equipment use the country for production and engineering operations.
Free Economic Zones (FEZs) and industrial parks provide ready-to-use infrastructure for manufacturers. Eligible companies locating in FEZs can benefit from a 0% corporate income tax rate for their first 10 years of operation and a 50% reduction in the standard corporate income tax rate for the following six tax periods. They may also qualify for exemptions from real estate tax and tax on qualifying dividend income, subject to applicable conditions.
Lithuania has developed a sizeable financial technology ecosystem. According to Invest Lithuania’s Fintech Landscape in Lithuania 2025–2026 report, the country hosts 248 active fintech companies serving more than 40 million customers across the European Union.
The ecosystem includes global companies such as Revolut Bank, which chose Lithuania as the base for its European banking operations. The sector is supported by an established regulatory framework, licensing infrastructure, and cooperation between regulators and market participants.
For companies serving European markets, Lithuania also offers a workforce with strong English skills: 85% of young professionals with higher education are proficient in English.
Explore the data, trends, and insights shaping Lithuania’s fintech ecosystem in our Lithuania’s Fintech Overview 2025–2026
Lithuania’s life sciences sector contributes around 2.7% of the country’s GDP, with a national goal of reaching 5% by 2030.
The ecosystem includes more than 300 companies and over 120 biotech startups operating in fields such as biopharmaceuticals, gene technologies, and personalised medicine. Global companies such as Thermo Fisher Scientific operate major research and production facilities in Vilnius, illustrating the scale of existing life sciences capabilities.
The sector is supported by university-industry collaboration, research infrastructure, and private investment. Bio City is a multi-stage life sciences campus under development in Vilnius. Its first facilities are operational, including the first gene therapy centre in the Baltics, while further molecular biotechnology and advanced therapy facilities are being developed. According to the project developer, the fully developed campus could represent up to €7 billion in long-term investment and potentially create around 2,000–2,400 jobs.
Together, these capabilities support the development and manufacturing of next-generation medical technologies.
Lithuania’s innovation capacity is gaining independent recognition. The country ranked 33rd out of 139 economies in the WIPO Global Innovation Index 2025, its second consecutive year of improvement, placing it 21st among European economies.
Within the index, Lithuania ranked 3rd globally for female employment among higher-education graduates and 8th globally for mobile app development, reflecting the depth of its digital and technical talent pool.
Lithuania is expanding its AI engineering and computing capabilities. According to the 2025 Impact of the IT Sector report, the ICT sector accounts for more than 5% of GDP and employs tens of thousands of specialists.
Public initiatives are also expanding computing and testing capacity. Lithuania is developing LitAI, a €130 million national AI factory supported by €65 million in EU co-financing. Expected to become operational in 2027, it will provide advanced computing infrastructure for business, research, and the public sector. An AI regulatory sandbox and the GovAI competence centre support the testing and adoption of AI.
Lithuania is also seeking to attract data centre investment. The country offers high digital connectivity and growing renewable energy capacity, while the government is working to improve grid-connection and regulatory conditions for such projects. Lithuania aims for 100% renewable energy in final electricity consumption by 2028 and carbon neutrality by 2050. These factors may support further development of data centre and AI infrastructure.
Security and defence technology are emerging as an investment area. Lithuania approved a defence budget of €4.79 billion, or 5.38% of GDP, for 2026 and has committed to higher defence spending in the coming years. The country is also expanding its defence industry ecosystem.
In 2025, Lithuania launched the €300 million Vytis initiative to expand defence-industry capabilities, accelerate innovation and testing, support investment, and strengthen the international competitiveness of Lithuanian companies.
Cybersecurity is also gaining strategic importance as companies and institutions strengthen digital resilience. In the ITU’s 2024 Global Cybersecurity Index, Lithuania scored 93 out of 100 and was classified in the “Advancing” tier.
NATO and EU cooperation links Lithuania’s security ecosystem to wider European and transatlantic initiatives.
Lithuania offers several public policy instruments for investment projects, including the Investment Highway framework for qualifying large-scale projects.
Under the framework, eligible investors may benefit from a 0% corporate income tax rate for up to 20 years, accelerated planning and permitting procedures, and a dedicated case manager supporting project implementation.
Additional investment incentives include:
These measures can support eligible companies in establishing or expanding operations in Lithuania.
Investment Highway support package fast-tracks large-scale investment projects with 0% corporate tax for 20 years, streamlined planning, and faster decision-making from public authorities, ensuring smoother setup and long-term success.
Lithuania’s investment proposition combines EU market access, sector-specific capabilities, and public support mechanisms. It is particularly relevant to export-oriented companies in advanced manufacturing, life sciences, fintech, AI, defence, and cybersecurity.
The fit varies by project and location, as the availability of talent, infrastructure, and incentives is not uniform across sectors.
Lithuania’s relatively small domestic market makes access to the wider EU market central to many investment cases. Companies should also plan carefully for specialist recruitment, as demographic pressures and skills mismatches affect parts of the labour market.
Lithuania offers access to the EU Single Market, a skilled workforce, sector-specific capabilities, and investment support measures. Find out more about Lithuania as a location for foreign direct investment.
Key sectors include fintech, life sciences, advanced manufacturing, AI and digital technologies, defence, and cybersecurity. Find out more about business opportunities in Lithuania.
Lithuania can be a strong fit for export-oriented companies in sectors where it has established capabilities. The suitability of a specific project depends on talent needs, scale, location, and infrastructure requirements.
Investors may be able to access Free Economic Zones, R&D incentives, and the Investment Highway programme, subject to the relevant eligibility criteria.
Invest Lithuania is here to keep you informed about the latest news, opportunities, and developments shaping Lithuania’s business landscape. If you have any questions or would like more details, feel free to contact us—we’re here to provide the insights you need.
